๐ $AVAX at a Crucial Technical Crossroads Despite On-Chain Surge
Avalanche (AVAX) is facing a pivotal moment on the charts โ while on-chain activity is booming, the price action tells a more cautious story.
After bottoming out in mid-March, AVAX staged a recovery with a double-bottom reversal, moving into an ascending channel supported by a rising RSI. This suggested bullish momentum through late March.
However, the trend has since weakened. Price action is now forming a descending triangle, with AVAX hovering just above key horizontal support (~$17.80โ$18.50). Adding to the bearish signals, AVAX recently broke below the ascending channel's lower boundary โ hinting at a possible shift from bullish consolidation to renewed selling pressure.
This confluence zone โ where horizontal support, triangle support, and the broken channel boundary meet โ is now a make-or-break level. A clean breakdown from here could trigger a move toward the $15.00 mark.
๐ Interestingly, this bearish technical setup comes despite Avalancheโs strong on-chain activity. Daily transactions have surged past 1 million (7-day average) โ the highest in over a year โ largely fueled by arena.trade, a platform that mints ERC-404-style tokens from X posts via bonding curves.
๐ Still, the rise in transaction volume hasnโt been matched by an increase in active addresses โ suggesting that a small number of users are generating most of the activity.
โ ๏ธ With RSI approaching oversold and price sitting on multi-level support, the next few daily candles will be critical in deciding whether AVAX rebounds or breaks down further.
Avalanche (AVAX) is facing a pivotal moment on the charts โ while on-chain activity is booming, the price action tells a more cautious story.
After bottoming out in mid-March, AVAX staged a recovery with a double-bottom reversal, moving into an ascending channel supported by a rising RSI. This suggested bullish momentum through late March.
However, the trend has since weakened. Price action is now forming a descending triangle, with AVAX hovering just above key horizontal support (~$17.80โ$18.50). Adding to the bearish signals, AVAX recently broke below the ascending channel's lower boundary โ hinting at a possible shift from bullish consolidation to renewed selling pressure.
This confluence zone โ where horizontal support, triangle support, and the broken channel boundary meet โ is now a make-or-break level. A clean breakdown from here could trigger a move toward the $15.00 mark.
๐ Interestingly, this bearish technical setup comes despite Avalancheโs strong on-chain activity. Daily transactions have surged past 1 million (7-day average) โ the highest in over a year โ largely fueled by arena.trade, a platform that mints ERC-404-style tokens from X posts via bonding curves.
๐ Still, the rise in transaction volume hasnโt been matched by an increase in active addresses โ suggesting that a small number of users are generating most of the activity.
โ ๏ธ With RSI approaching oversold and price sitting on multi-level support, the next few daily candles will be critical in deciding whether AVAX rebounds or breaks down further.
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AVAX
18.05
-0.87%